The long-simmering question of whether artificial intelligence could truly disrupt Google’s search dominance ignited investor fears on Wednesday, sending Alphabet Inc.’s stock tumbling after a high-ranking Apple executive testified that AI usage is already cutting into traditional search activity on iPhones.

Apple exec points to AI impact on search volume

Testifying during the ongoing federal antitrust trial against Google’s parent company, Alphabet, Apple’s Eddy Cue delivered a potentially damaging assessment.

He revealed that searches conducted via Apple’s Safari browser – a major gateway to Google for millions – experienced their first-ever decline in volume in April.

Cue directly attributed this unprecedented dip to users increasingly turning to AI engines instead of traditional search to find answers.

Cue’s testimony carries significant weight given the context.

Apple receives substantial payments from Google, reportedly exceeding $20 billion annually, to maintain Google as the default search engine on Apple devices like the iPhone and iPad.

This lucrative arrangement is central to the Justice Department’s antitrust case against Google.

Adding further pressure, Cue also suggested Apple would likely incorporate AI engines as search alternatives on its devices over time, according to Bloomberg reports on his testimony.

Validating fears, fueling AI bets

This disclosure from a key Google partner appears to validate a core fear that has hovered over Google since AI chatbots like OpenAI’s ChatGPT exploded onto the scene in 2022: that AI could fundamentally erode Google’s highly profitable search empire.

It neatly explains the massive influx of venture capital into AI startups, as investors bet these new technologies can carve out significant market share from Google, whose search dominance underpins its $2 trillion valuation.

The prospect of AI disruption is precisely what has spurred Google itself to aggressively integrate AI into its own services, transforming conventional searches into conversational queries answered by its Gemini AI engine through features like AI Overviews.

Despite early, sometimes mocked, missteps (infamously including suggesting glue on pizza), Google has consistently maintained that users appreciate the AI-enhanced results.

Contrasting narratives: Google vs. Apple testimony

During Alphabet’s earnings call last month, CEO Sundar Pichai presented an optimistic view, claiming Google’s AI features were actually boosting engagement.

“Nearly a year after we launched AI Overviews in the US, we continue to see that usage growth is increasing as people learn that Search is more useful for more of their queries,” Pichai told analysts at the time.

Cue’s sworn testimony on Wednesday directly challenges that narrative, suggesting Google’s efforts haven’t fully insulated its core market from the AI shift.

The market reaction was swift and negative, with Google shares falling more than 7% following the news.

Google pushes back

Late Wednesday, Google issued a statement disputing Cue’s assertion.

The company stated it continues to see “overall query growth in search,” specifically adding, “That includes an increase in total queries coming from Apple’s devices and platforms.”

The conflicting statements from two deeply intertwined technology giants highlight the high stakes involved as AI continues to reshape how users seek and consume information online, posing a potentially existential challenge to Google’s long-held dominance in search.

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European stock markets are set to open in positive territory on Thursday, as investors navigate a packed day featuring crucial interest rate decisions from several key central banks, including the Bank of England, alongside a continued flood of corporate earnings reports.

Early indicators point towards gains across major European bourses.

According to data from IG, the UK’s FTSE 100 is expected to open 46 points higher at 8,586, Germany’s DAX is projected to gain 147 points to 23,263, France’s CAC 40 is seen rising 45 points to 7,662, and Italy’s FTSE MIB is anticipated to add 230 points to 37,960.

The primary focus for market participants today will be monetary policy announcements. Decisions are due from Sweden’s Riksbank and Norway’s Norges Bank.

However, the most closely watched announcement will come from the Bank of England (BoE), which is widely anticipated by market participants to cut interest rates at today’s meeting.

These central bank decisions come just a day after the US Federal Reserve opted to hold its rates steady.

Fed holds, Powell warns on tariffs

Overnight, the US Federal Open Market Committee (FOMC) maintained its benchmark overnight borrowing rate in the 4.25% to 4.5% range, a decision largely expected by markets.

In his subsequent press conference, Fed Chair Jerome Powell reiterated a cautious stance, warning that the significant tariff hikes already announced by the Trump administration, if maintained, could potentially slow economic growth and contribute to higher long-term inflation.

He stressed the Fed’s data-dependent approach amidst rising risks to both employment and inflation. US stock futures were relatively unchanged in overnight trading following the Fed’s announcement.

Asia-Pacific markets presented a mixed picture overnight. Investors digested the Fed’s decision while keeping a close watch on developments related to the upcoming US-China trade talks scheduled for this week in Switzerland, involving US Treasury Secretary Scott Bessent and Chinese counterparts.

European earnings continue to flow

Domestically, the European earnings season remains in full swing.

Today promises another busy schedule, with results expected from major companies spanning various sectors.

Key reports are due from shipping giant Maersk, energy technology firm Siemens Energy, building materials company Heidelberg Materials, consumer goods maker Henkel, semiconductor firm Infineon, specialty chemicals company Lanxess, sportswear brand Puma, defence contractor Rheinmetall, technology group Bosch, airline Norwegian Air, telecom operator Swisscom, insurer Zurich Insurance, staffing firm Adecco Group, InterContinental Hotels Group, and Spanish bank Banco Sabadell.

Early earnings highlights: Sabadell beats, Siemens Energy cautious

Among the early reporters, Banco Sabadell delivered strong first-quarter results Thursday morning.

The Spanish lender posted a net profit of 489 million euros ($552 million), representing a 58.6% jump year-on-year and comfortably exceeding analyst forecasts of 405.9 million euros.

Sabadell is currently navigating a hostile €12 billion takeover bid from rival BBVA.

Siemens Energy also reported results, posting a better-than-expected 20.7% annual increase in quarterly revenue (to €10 billion) and a significant jump in net income (€501 million vs €108 million YoY).

This led the company to upgrade its full-year guidance for revenue growth and net income.

However, Siemens Energy explicitly warned that President Trump’s tariff regime is expected to directly impact its bottom line in the second half of fiscal 2025, estimating a potential profit hit “up to a high double-digit million € amount,” even after mitigation measures.

UK-US trade deal buzz

Adding another layer of interest, particularly for the UK market, are reports suggesting Britain is poised to become the first country to sign a post-tariff announcement trade deal with the United States.

The New York Times reported this development following comments from President Trump Wednesday night hinting at an upcoming trade deal briefing.

While official confirmation is awaited (CNBC received no immediate comment from the White House or UK embassy), a spokesperson for the UK’s Department for Business and Trade confirmed to CNBC that talks on an economic deal are “ongoing.”

As European markets open, investors will weigh the implications of the central bank decisions, digest the diverse corporate earnings reports, and continue to monitor global trade developments.

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The Shopify stock price has wavered this month as investors watch the upcoming earnings and the new developments on trade, especially between the US, China, and Canada. SHOP was trading at $94.50 on Wednesday, down by over 27% from its highest level this year.

The US trade war will impact Shopify’s business

Shopify is a technology company that offers a software platform that enables users to create and run their e-commerce platform solutions easily. The alternative of nit using its product is to build an e-commerce website from scratch, which is expensive and time-consuming.

Shopify hosts businesses of all sizes, including many that are in the Fortune 100. However, most of the companies in the platform are small and medium enterprises, especially in the United States of America (USA). It also hosts many dropshippers who buy products in China and sell them in the country.

The recently announced tariffs on Chinese goods will have a negative impact on these businesses, which will see their operational costs surge and sales slow. That’s because the US has implemented a 145% tariff on most goods coming from China.

Analysts believe that many small businesses that rely on Chinese suppliers will not survive these tariffs, which some US officials have termed as an embargo. In addition to the higher import costs, these firms will see weak sales as customers struggle with rising costs.

These factors will affect Shopify because of how it makes money. In addition to the monthly platform access fees, the company also collects a small commission for all goods and services sold on its platform.

Fortunately, there are signs that the US will reduce the tariffs as the two countries start negotiating a trade deal on Saturday in Switzerland.

SHOP earnings ahead 

The next important catalyst for the Shopify stock price will be the upcoming earnings, which will provide more information about its performance in the first quarter.

There is a likelihood that the company’s sales surged in the first quarter as more customers rushed to buy products ahead of the Liberation Day tariffs in April.

Yahoo Finance data shows that the average revenue will be $2.33 billion, up by 25.3% from the $1.86 billion it made in the same period last year. 

Analysts also expect the average earnings per share will be 26 cents, up 20 cents for the same period last year. Odds are that the company’s results will be higher than estimates, as it has done in the past.

The annual revenue guidance is that its revenue will be $10.79 billion, up by 21.4 billion from 2024. These numbers will be impressive for a company that has been in business for many years.

Analysts are also optimistic about the Shopify stock price, with the average estimate being $116, up from the current $94.50.

Read more: Shopify stock price giant megaphone points to a strong surge

Shopify stock price analysis 

The Shopify stock price often experiences high volatility after publishing its financial results. For example, it surged $54 to $67 when it released its numbers in August last year. It rose from $89 to $115 in the next report in November, while its performance in the last report was muted.

These numbers come after the SHOP stock has formed a bearish island pattern. This pattern is characterized by a cluster of candlesticks that are isolated from the previous price action. It is one of the most bearish patterns in the market.

Therefore, there is a likelihood that the stock will drop after its earnings, and possibly retest the important support level at  $85. The bearish outlook will become invalid if the stock moves above the psychological level at $100.

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Shares of Tata Motors have been on an upward swing, gaining more than 3.45% on Thursday, marking a surge of about 8.7% in over just two trading days driven by investor optimism surrounding global trade developments.

Analysts and market experts believe Tata Motors is well-positioned to benefit from the recently concluded Free Trade Agreement (FTA) between India and the UK, which includes significant tariff reductions for high-end vehicles imported under quota.

The announcement of the agreement by Prime Minister Narendra Modi has sparked interest in related stocks, especially companies with a large UK footprint like Tata Motors.

At the same time, a report by The New York Times that the US is expected to announce a trade pact with the UK later in the day, has also added to investor cheer due to positive implications on Jaguar Land Rover which gets 25% of its total sales from the US market.

Ind-UK FTA to see JLR’s price in India fall

The FTA between India and UK reduces tariffs on imported automobiles from 100% to 10%, under specific quotas.

This change is seen as a direct positive for Tata Motors’ UK-based subsidiary, Jaguar Land Rover (JLR), whose premium car lineup includes the widely known Range Rover series.

The lower tariffs could help boost JLR’s India-bound shipments, including electric vehicle models planned for export from the UK.

Jefferies, in a recent note, projected that JLR prices could fall by 6% to 20% in India as a result of the agreement.

The firm also identified Indian textiles, luxury carmakers, and premium liquor brands as key beneficiaries of the pact.

Analyst Mitesh Panchal, a Sebi-registered investment advisor, told Business Today “Tata Motors will be a clear beneficiary of the FTA agreement. Investors should accumulate in the Rs 680-700 range, with short-term targets of Rs 780-820.”

Rajesh Sinha of Bonanza added that the agreement could bolster both strategic and economic ties between India and the UK and pointed to JLR’s plans to establish a new manufacturing facility in Tamil Nadu as part of its long-term strategy.

US-UK trade deal speculation adds to investor cheer

Separately, a report by The New York Times suggested that a US-UK trade deal may also be in the works.

Former US President Donald Trump hinted on Truth Social that a major trade pact involving a “highly respected country” would be announced shortly.

Although unnamed, market participants speculated that the country was the UK.

The potential implications for JLR are significant.

The automaker derives about 25% of its total sales from the US market.

In April, JLR briefly paused vehicle shipments to the United States following a 25% tariff on all auto imports.

Reports now indicate that shipments have resumed, though no official confirmation has been made.

Demerger plan adds further momentum to stock

Adding to the positive sentiment, Tata Motors recently secured shareholder approval for a major internal restructuring on Wednesday.

The company plans to split its commercial and passenger vehicle businesses into two separate publicly listed entities.

The decision, which received near-unanimous support, is expected to improve operational focus and unlock shareholder value.

Kranthi Bathini, Director of Equity Strategy at WealthMills Securities, said the stock remains attractive from a medium- to long-term perspective.

“Those holding should continue with their positions and accumulate on dips,” he advised.

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The ongoing earnings season has been relatively muted as investors believe the results were transitory because the business happened ahead of Trump’s tariffs. As such, most stocks have not had the significant volatility that normally accompanies earnings releases. 

This article explores some of the top stocks that will publish their earnings on Thursday, including Toast (TOST), Pinterest (PINS), Affirm (AFRM), and DraftKings (DKNG). The focus will be on technical analysis and the top levels to watch when the results come out.

Toast stock price forecast

The Toast stock price has remained in a tight range in the past few days as investors wait for its financial results. It has been stuck at $36 since late last month, meaning that it is hovering at the 50-day Exponential Moving Average (EMA). 

Toast stock is forming a bullish flag chart pattern, a popular continuation sign characterized by a vertical line and some consolidation. It has also formed an inverse head and shoulders pattern, which leads to a bullish reversal. 

Therefore, the stock will likely have a bullish breakout after earnings. If this happens, the next level to watch will be at $42.97, its highest level in February, which is 20% above the current level. 

Read more: Toast stock has skyrocketed: could TOST surge to $70?

Pinterest stock price analysis

The daily chart shows that the PINS share price peaked at $40.8 in February and has dropped to the current $ 27. It has already formed a death cross pattern as the 50-day and 200-day moving averages crossed each other. 

The Pinterest stock has formed a bearish flag pattern, which is made up of a vertical line and a triangle. It often leads to a strong bearish breakdown. Therefore, there is a risk that the stock will go down after earnings, as other social media companies did.

Affirm stock forecast

Affirm, a top player in the buy now, pay later industry, has rallied after bottoming at $30.83 in April, a performance that mirrors that of other companies in the United States. 

The eight-hour chart shows that the stock has formed an inverse head and shoulders pattern. The head section is at $30.83, its April lows, while the left shoulder has moved to $42.23. Its neckline is at $52, where it is now trading at. 

Therefore, the Affirm share price will likely drop and retest the support at $42.23, the right shoulder, and then stage a strong comeback. The alternative scenario is where it rebounds above that resistance and then continues its recovery. If this happens, the next target will be at $82.58, which is up by 55% above the current level. 

Read more: Affirm stock price forecast: set to enter beast mode soon

DraftKings stock price forecast

The daily chart shows that the DKNG share price peaked at $53.50 earlier this year and then tumbled after releasing their earnings numbers in February. The main concern is that the sports betting industry is slowing, which will affect its overall growth. 

DraftKings stock price has remained below all moving averages, and like Pinterest, it has formed a bearish pennant pattern. The two lines of this triangle are about to converge, which will lead to more downside. 

A bearish breakdown will point to more downside, potentially to the next key support level at $29.70, down by 15% below the current level. 

Read more: DraftKings stock nears key price ahead of earnings

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